According to the Taylor rule, which of the following will lead to a higher nominal federal funds rate?
A) an increase in inflation
B) a positive output gap
C) a positive inflation gap
D) all of the above
E) none of the above
D
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The demand for corn increases. As a result, the price of corn will ________, and the less elastic the supply of corn, the ________ will be the effect on the price
A) fall; smaller B) fall; greater C) rise; smaller D) rise; greater
Suppose a monopolist faces the constant price elasticity demand curve:
p = Q? where ? < 0. The monopolist has a constant marginal cost of c. a. If ? < -1, can you determine what price and quantity will the monopolist set? Explain. b. If 0 > ? > -1, what is the price and quantity the monopolist will set?
If a country's government reduced corruption and reformed its tax system so that businesses found operating there less risky, it's likely that this country's
a. net exports and net capital outflows would increase. b. net exports would increase and its net capital outflows would decrease. c. net exports and net capital outflow would decrease. d. net exports would decrease and its net capital outflow would increase.
The quarterly increase in an employee's salary depends on the rating of his work by his employer and several other factors as shown in the model below:
Increase in salary= 
0+
0?Rating + other factors. The variable ‘Rating' is a(n) _____.
A. dependent variable B. ordinal variable C. continuous variable D. Poisson variable